New York preps BNPL rules

ChainWatcher · 2026-02-28T01:57:03+00:00

Governor Kathy Hochul announced new regulations for Buy Now, Pay Later loans in New York, aiming to protect consumers with better disclosures, fee limits, and dispute resolutions to avoid debt spirals from misleading financial products.

ChainWatcher

2026-02-28 01:57:03

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Unveiled by Governor Kathy Hochul, the Department for Financial Services plans promise to protect New Yorkers taking out BNPL loans through required disclosures, dispute resolution standards, limits on fees, and data privacy protections.

Says Hochul: "Too many New Yorkers have learned the hard way that some ‘Buy Now, Pay Later’ products are designed to trip them up with junk fees and overly burdensome fine print instead of helping them build a stable financial future.

“These new nation-leading regulations ensure that lenders know we have clear disclosures, limits on fees and real oversight so families don’t get pushed into a debt spiral while big financial companies cash in.”

New York’s decision to roll out its own rules comes after the Consumer Financial Protection Bureau performed a U-turn last year, dropping an interpretive rule declaring that pay-in-four BNPL lenders should be treated in the same way as credit cards.

The proposal now faces a 10-day preproposal comment period and then a 60-day public comment period with the law taking effect 180 days after the rule is adopted.

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